Banking Recap

M&A Transaction Announced for $230.0M

PNM Resources (NYSE: PNM), an Albuquerque, New Mexico-based energy holding company serving customers through its regulated utilities PNM and TNMP, announced on December 26, 2023 that it entered into an agreement to sell its 50% ownership interest in its renewable joint venture, New Mexico Renewable Development, LLC (NMRD), to Exus North America Holdings, LLC. American Electric Power (AEP), which owns the other 50% of NMRD, is selling its interest in the same transaction.

Dec 26, 2023·SEC EDGAR (8-K)·pending regulatory·asset/JV interest sale (renewable power)

Deal value

This entry is sourced from PNM Resources' Exhibit 99.1 press release filed as part of an 8-K on December 26, 2023. The sale had not yet closed as of the filing date; it was expected to close in February 2024, subject to regulatory approval by the Federal Energy Regulatory Commission and New Mexico regulatory approvals associated with one of NMRD's projects. The release notes the Hart-Scott-Rodino Antitrust Improvements Act waiting period had already expired.

KeyBanc Capital Markets is serving as financial advisor to both PNM Resources and AEP jointly on the sale side; no separate financial advisor is named for buyer Exus North America Holdings, LLC.

Foley & Lardner LLP is serving as legal counsel to both PNM Resources and AEP.

Under the disclosed terms, PNM Resources and AEP agreed to sell the full NMRD portfolio for approximately $230 million, subject to true-up adjustments at close. PNM Resources' 50% share of the approximate gross proceeds is $115 million, which the company states will support funding of regulated capital investments. The NMRD portfolio includes nine operating solar developments totaling 185 MW and six projects under development with an estimated output of 440 MW.

The release does not disclose AEP's specific share of proceeds (though it is presumed to mirror PNM's $115 million given the equal 50/50 ownership split), the purchase agreement's termination provisions, or any financing arrangements by buyer Exus North America Holdings. The release also references a separate, previously announced pending acquisition of PNM Resources itself by Avangrid, Inc., which is a distinct transaction from this NMRD asset sale and is not detailed further in this filing.